Page 117 - Chinese SIlver By Adrien Von Ferscht

The trade in opium had grown to such an extent by the late 18th century that the East
India Company, fearing it might use its license, switched to auctioning the opium in their
Calcutta headquarters to ‘independent’ traders; there was a purpose-built bourse in
Calcutta where auctions for opium and tea were held. The newly-sold opium was then
shipped in vessels owned by ‘country traders’.

The East India Company absolved itself of direct blame yet maintained total control and
the vast majority of the profits. The country traders comprised mainly of Parsees and Jews
and were as wily as the Chinese merchants. Country ships were soon found smuggling
opium into China along the eastern coast; not wishing to return with empty vessels, goods
from the interior of China were funnelled through these merchants, in particular tea. This
was the ‘country trade’.

The word “hoppo” has passed into English slang but it is derived from the Chinese word
hubu, meaning ‘treasury’; the yuehaiguanbu was the Canton Customs Office. Merchants
were not allowed access or dialogue with the Emperor; the Hoppo and the Cohong were
the effective Canton representatives of the Qing Cour in respect of foreign trade. The
Chinese Hong merchants developed close relations with their Western counterparts,
instructing them carefully on how to conduct their business without antagonising the
Chinese bureaucracy. This was the Cohong creating the ultimate opportunistic situation.
The whole scenario is [and was] a recipe for organised chaos and corruption which
somehow also provided the Emperor with sufficient taxes to appease him [for most of the
time!]. We should not lose sight of the fact that was a huge amount of trading being carried
out in virtually a tiny area of land in and around Canton and the Pearl River. The British
were eventually joined by the Americans

“View of Hoppo Returning”, late 18th century by unknown Chinese artist
When the Hoppo arrived for inspection visits, the merchants and local officials turned out to receive him